Thousands of educators in SLO County victims of bank error

In what appears to be a technical error, after direct depositing paychecks in the accounts of almost 4,000 educators in San Luis Obispo County, the bank reversed the deposits over the weekend leaving teachers wondering were their money had gone.

On Aug. 28., the SLO County Office of Education wired payroll funds to Union Bank, which then distributed the money to the employees’ banks. Over the weekend, however, something went wrong and the funds were reversed out of the accounts of 3,833 teachers and staff, according to Assistant Superintendent Sheldon Smith.

While not all employees lost funds, each school district in the county was impacted.

On Aug. 31 at about 8 p.m., the funds were transferred back to the employees’ banks, though the monies did not show up in the staffer’s accounts until Tuesday morning.

District officials plan to talk to bank administrators regarding helping teachers who were charged for fees for insufficient funds based on the bank’s error.